0 Increasing Real Estate Search Interest Signals Strong Summer Market

Interest in real estate appears to be increasing despite the uncertainty of the pandemic, according to data provided by Google and Realtor.com. These leading indicators of real estate search interest show potential for a strong summer buying-season as pent-up demand from spring re-emerges. This is especially true for Florida as two Florida cities ranked near the top for increased buyer interest, with Miami coming in at number four. 

FloridaRealtors reports Google Search data that compared a metro area’s lowest day of home searches during 2020 to home searches at the end of April to measure early impact. Out of 50 cities listed, two Florida cities ranked in the top 10 for positive comparative gains. Miami came in at number 4 with 81.82% more searches at the end of April than it had on its slowest day of 2020 so far. This is hinting that real estate demand in Florida, and in-particular Miami, may have been less heavily impacted than some areas of the country.

 

Trends Show Increase In Real Estate Search Interest 

One of the easiest ways to look at changes in consumer interest is by using Google Trends. Google Trends is a website by Google that analyzes the popularity of top search queries in Google Search. The website uses graphs to compare the search volume of different queries over time. By looking at Google Trends data for real estate search terms such as “homes for sale”, “real estate”, “houses for sale” and “condos for sale”, you can see a story emerge about consumer interest in real estate in the midst of COVID-19.

The numbers on this graph represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term.

There was a clear drop in interest in real estate in early March when the pandemic began spreading across the United States. Interest began rebounding in April, and by May, it was back to pre-pandemic levels in Florida and throughout the country. Throughout May and June, interest in real estate terms continued to increase until surpassing pre-pandemic levels.

When comparing pre-pandemic peaks in early March to the end of June, we saw a +30% increase in interest for “houses for sale” search volume and a +20% increase for “homes for sale” search volume.

This trend has also been noticed across the real estate community. According to realtor.com data cited by FloridaRealtors, “listing visits, saves and shares are all up significantly since the first wave of shelter-in-place orders took effect on March 16 – especially for those listings with virtual tours.” Specifically, realtor.com reported a 30% increase in listing views for single-family homes and condos. There was also a 76% increase in saved homes and a 95% increase in sharing home listings with other users.

 

Spring Home-Buying Season Shifts Towards Summer

While the coronavirus took a big bite out of the spring home-buying season, the real-estate industry appears poised to recover from the pandemic. “Data suggests that home shoppers who had paused their search are now picking it back up, and the spring homebuying season won’t be lost, but merely pushed into the summer months,” says Danielle Hale, chief economist at realtor.com.

The environment is right for some very positive upticks in the real estate market in the near future. Interest rates are low, we have pent up demand from the spring season, and virtual tours have been helping to keep the interest alive during social distancing.

Other emotional factors are at play, too. Surely, the pandemic has caused fundamental shifts in people’s perceptions and way of life. Many people are spending hugely increased amounts of time at home and thus want to be in a space that makes them happy. The “your home is your sanctuary” mindset is alive and growing in the current environment, and for good reason. This focus on the home and home-life is one of the silver-linings of this dark situation, and it could certainly lead to an increase in demand from those looking to find a space that better fits their lifestyle.

 

Virtual Home Tours Have Taken on Increased Importance

Adjusting to virtual tour options quickly became an important factor in maintaining real estate interest following the stay at home orders. Realtor.com found that since shelter-in-place orders began, homes that offer virtual tours saw double the growth in listing visits than those without virtual tours. “User visits were also 29% higher for listings featuring virtual tours, with increased engagement and a greater likelihood of a consumer connecting with an agent.”

Virtual tours will likely become a part of the new norm moving forward. Realtor.com found that 65% of home buyers believe virtual tours will continue to be a great resource in their home shopping process even after the pandemic. However, this is not to be seen as a stand-alone solution with only 8% of users think virtual tours can be a replacement for in-person tours. Source: “Studies Suggest Buyers Prepared to Hit the Ground Running,” Florida Realtors

When asked what they like about virtual tours, top responses include:

• They help me eliminate homes that aren’t for me (52%)
• They help me see the details of a home without having to step inside (43%)
• They help me create a shortlist of homes I want to see in person (38%)
• They allow me to see more homes quickly without having to drive around to open houses (30%). 

Google search volume for virtual home tours peaked immediately following the stay at home orders. It has since decreased from the levels seen in March, but interest has remained above previous levels.

 

The rise in interest in real estate seen across Google and by realtor.com are very positive leading indicators for the summer real estate market. However, it’s important to keep in mind that they are just that, indicators. Will this uptick in searches and interest lead to actual transactions? That’s the trend we will want to look for moving forward. If you are considering buying or selling a home in Miami, reach out today so that we can help you keep an eye on the local real estate market.